LVMH Reports a Drop in Revenue Over 2025
Earlier this week, luxury fashion and spirits company LVMH released its year-end financial report, and overall things did not look great—which should come as no surprise to anyone who has been following the news about the spirits industry. According to CNBC, the company’s organic revenue grew by 1 percent, the equivalent of 22.7 billion euros (about $27.2 billion) in the fourth quarter, but declined by the same amount over the course of the entire year. Specifically, the company’s spirits division is facing a drop in profits, and LVMH is pointing the finger at its Cognac sales as being a major reason why.
According to the LVMH report, Moet Hennessy, which controls brands including Hennessy Cognac, Glenmorangie, Ardbeg, and Champagnes like Dom Perignon, performed poorly over the past year. The wine and spirits division’s revenue was down by 5 percent, with profit falling by 25 percent to 1.016 billion euros (about $1.2 billion), driven by consumers’ lack of interest in the U.S. and China as well as the Trump administration’s imposition of tariffs. The company singled out Cognac as being its weakest performing spirits category. “Revenue for Hennessy… was held back by weaker local demand, mainly due to issues with customs duties in China and the United States,” said the report. “The Wines & Spirits Maisons continued to invest in the long-term desirability of their brands and launched a program aimed at boosting efficiency and reducing costs.”
It might not mean that Cognac is in trouble across the board, however. Remy Cointreau, another company that controls major Cognac brands Remy Martin and Louis XIII, reported growth of nearly 3 percent in its third quarter, according to the website The Spirits Business. That was helped along by a boost in Cognac sales of more than 3 percent after a 4 percent dip over the rest of the year—not quite enough to balance this out, but potentially a good sign overall. Even so, the company’s organic sales were down by almost two percent through December of 2025.
Of course, chairman and CEO Bernard Arnault tried to put as good a spin on LVMH’s situation as possible. “In 2026, in an environment that remains uncertain, our Maisons’ ability to inspire dreams—coupled with the highest levels of vigilance with regard to cost management, and our environmental and social commitments—will once again be a decisive asset underscoring our leadership position in the luxury goods market,” he wrote. “We will remain true to our entrepreneurial tradition as a forward-looking family group focused on sustainable creativity in high-quality products, exceptional spaces and the long-term future of our outstanding craftsmanship.” We will report on developments throughout the coming year.
